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Appellate Court Dismisses Challenge to Cities’ Assessments

Client Successes

BB&K Attorneys Richard Egger and Thomas Rice Successfully Defend the Cities

On behalf of the cities of Ontario and Rancho Cucamonga, a team of Best Best & Krieger LLP attorneys successfully defeated an action challenging assessments levied by the Greater Ontario Tourism Marketing District. Attorneys Richard Egger and Thomas Rice represented the cities. The San Bernardino County Superior Court dismissed the case for lack of standing. On Sept. 30, the California Court of Appeal dismissed the follow up appeal by opponents of the Tourism Marketing District.

Formed pursuant to the Property and Business Improvement District Law, the Greater Ontario Tourism and Marketing District includes all lodging businesses in the two cities. Its purpose is to jointly promote the businesses as “tourist, meeting and event destinations.”  The District uses assessments imposed on hotels located in the two cities to fund its promotional activities. The challenger in the case claimed the assessments violated the California Constitution. The trial court ruled, however, that the organization did not have standing to challenge the validity of the assessments.

The appeal was dismissed because it was not filed in a timely manner. In its opinion, however, the appellate court noted that it would have upheld the lower court’s decision to dismiss the case on the merits.

The full published opinion can be read by clicking here.

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